According to CNET news, many artists have signed a letter saying Pandora radio should not be allowed to “slash musicians’ pay.” They said that while they are “big fans of Pandora,” they can’t “countenance the online music company’s lobbying to slash royalties paid to recording artists when their songs are played.”
Music First, an organization that represents performers and their rights, along with music industry supporter Sound Exchange said that 125 artists, including Maroon 5, Missy Elliot, T.I., and the Zac Brown Band, have signed a letter entitled “A Musicians’ Perspective On Pandora,” that criticizes the music streaming company for seeking to cut its royalty payments.
At the center of this issue is the Internet Radio Fairness Act. This bill cuts the royalties online radio services pay to studios and artists, making the fees more comparable to those paid by radio and satellite radio providers.
PC Magazine states that, Congress has previously intervened in the ongoing struggle between artists and internet radio companies. During the Copyright Royalty Board’s (CRB) last rate-setting process, U.S. legislators helped to negotiate a short-term solution that kept internet radio companies from paying more than 100 percent of their revenues in royalty fees.
Congress is currently considering the “InternetRadio Fairness Act,” which if enacted would “allow the CRB to evaluate internet radio royalty rates under the widely used 801(b) standard, instead of the current standard,” according to a Pandora spokeswoman (CNET.com).